Pixelworks slumps following Q3 miss

|By:, SA News Editor

Pixelworks (PXLW -4.3%) reported Q3 revenue of $15.3M (+59% Q/Q and -6% Y/Y) and EPS of $0.10; the one analyst covering the company was expecting revenue of $15M and EPS of $0.11. On its CC (transcript), the company guided for Q4 revenue of $14M-$15M and EPS of $0.07; said analyst has been projecting $15.1M and $0.05.

Thanks to $4.8M in Q3 licensing revenue (compared with virtually none in Q2), gross margin rose to 61.6% from 49.7% in Q2 and 49% a year ago. GM is expected to slide to the 54%-57% range in Q4.

Chip sales to the digital projector market were roughly flat Q/Q at $6.6M, and sales to the TV/display panel market rose to $2.8M from Q2's $1.6M.